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Oct 4, 2013

U.S. default seems unthinkable but investors have options

NEW YORK, Oct 3 (Reuters) – Investors who behave
conventionally are likely to get burned if the political
standoff over the federal budget and the debt ceiling ends up
forcing the United States to default.

But portfolio managers and strategists say that if investors
put their trading hats on, they may be able to protect
themselves and even possibly come out ahead.

Oct 1, 2013

U.S. manufacturing growth picks up, Chinese factories struggle

NEW YORK/BEIJING, Oct 1 (Reuters) – U.S. manufacturing grew
last month at its fastest clip in nearly 2-1/2 years but
expansion in China’s massive factory sector was slight and deep
divergences persisted in euro zone countries, surveys on Tuesday
showed.

The data, drawn from business surveys released on Tuesday,
highlighted the uneven nature of the global economic recovery.
Signs that China may be struggling were of particular concern
with a partial U.S. government shutdown and political crisis in
Italy already stoking uncertainty in financial markets.

Sep 26, 2013

Coeure says ECB has easing bias, possible to cut rates

NEW YORK (Reuters) – The European Central Bank has room to cut interest rates further if needed but does not target a specific level for money market rates, central bank Executive Board member Benoit Coeure said on Thursday.

In a prepared speech to be given to the Money Marketeers Club of New York, Coeure also said the ECB’s stated intent to hold its benchmark interest rate low for an extended period had helped anchor the short-term money market rates banks use when lending to each other.

Sep 23, 2013

EU’s Rehn says Europe must press ahead with economic reforms

NEW YORK (Reuters) – The European Union’s chief economic policymaker on Monday said German Chancellor Angela Merkel’s strong showing in her country’s election on Sunday demonstrated that Germany’s push for economic reforms across the euro zone will continue, something that is critical to the region’s health.

Germany is Europe’s biggest economy and it has exercised a great deal of muscle in trying to guide the euro zone through the financial crisis and a recession that continues to grip much of the region, particularly some of the southern countries.

Sep 23, 2013

China, Europe orders signal economic healing but U.S. disappoints

LONDON/NEW YORK (Reuters) – A flood of new orders gave a boost to European and Chinese firms in September although weakness in U.S. factory activity tempered evidence of a healing global economy.

Purchasing managers’ indexes, surveying thousands of companies across the globe, showed a welcome pick-up in the euro zone and China although slower growth in the United States’ manufacturing sector backed the Federal Reserve’s decision last week to maintain its support for the world’s largest economy.

Sep 20, 2013

Fed officials criticize, explain taper delay

NEW YORK (Reuters) – An outspoken Federal Reserve hawk warned on Friday that the U.S. central bank had harmed its credibility by delaying a highly anticipated reduction in monetary stimulus this week, but another official argued it had been the right thing to do.

Policymakers hit the speech circuit as financial markets continued to puzzle over Wednesday’s shock decision by the Fed not to scale back its massive bond buying program, after allowing the impression over the summer that it would do so.

Sep 20, 2013

Fed need not rush to taper while inflation is low -Bullard

NEW YORK, Sept 20 (Reuters) – Low readings on inflation
allow the U.S. Federal Reserve to be patient in deciding when to
scale back its pace of asset purchases, a senior Fed official
said on Friday, cautioning that he would not back action until
price pressures picked up.

“While I expect inflation to rise during the coming
quarters, I want to see evidence of such an increase before
endorsing less accommodative policy action by the FOMC,” James
Bullard, president of the St. Louis Federal Reserve, said.

Sep 20, 2013

U.S. Fed can be patient on tapering while inflation is low – Bullard

NEW YORK (Reuters) – Low readings on inflation mean that the U.S. Federal Reserve can be patient on deciding when to scale back its pace of asset purchases, a senior Fed official said on Friday, cautioning that he would not back action until price pressures picked up.

“While I expect inflation to rise during the coming quarters, I want to see evidence of such an increase before endorsing less accommodative policy action by the FOMC,” James Bullard, president of the St. Louis Federal Reserve, said.

Sep 20, 2013

Fed can be patient on tapering while inflation is low: Bullard

NEW YORK (Reuters) – Low readings on inflation mean that the U.S. Federal Reserve can be patient on deciding when to scale back its pace of asset purchases, a senior Fed official said on Friday, cautioning that he would not back action until price pressures picked up.

“While I expect inflation to rise during the coming quarters, I want to see evidence of such an increase before endorsing less accommodative policy action by the FOMC,” James Bullard, president of the St. Louis Federal Reserve, said.

Sep 19, 2013

Fed delay both delights, confounds investors

NEW YORK (Reuters) – Wall Street’s knee-jerk reaction to the Federal Reserve choosing to keep the pedal to the monetary policy metal was loud and clear on Wednesday: Buy Buy Buy!

That initial exuberance, however, masks a nagging worry and no shortage of confusion about the Fed’s reluctance to act after the central bank had positioned markets for a reduction in its $85 billion per month bond buying program. It left many investors in a fog about what comes next.